TOBACCO INDUSTRY.

Auckland Star, Volume LX, Issue 256, 29 October 1929, Page 4

TOBACCO INDUSTRY.

GOVERNMENTAL ATTITUDE,

LEFT TO PRIVATE ENTERPRISE

(By Telegraph.—Special to "Star.")

WELLINGTON, this day.

The Government guarantee of a minimum price for exported tobacco has now run its three-year course and though the matter of renewal has not been brought before Cabinet It appears unlikely that there will be an extension of the period. The attempt made by the late Government to place the new tobacco industry on a footing in the country was an attemptaimed at the creation of an export trade. In the first season, however, complications ensued through the fact that Messrs. W. D. and H. O. Wills decided to purchase practically all the Nelson crop. It was agreed that a certain number of selected samples should be exported to test the market and the report on these was fairly favourable, but following (this deal many growers who commenced to raise tobacco for export, continued then operations under contract to Messrs. Wills, and the chances of building up an export trade from Nelson, which was the borne of the movement, began to dwindle season further complications followed the decision of growers in the North Island to embark on tobacco growing. In Hokianga a fairly large crop was raised, •but when it was harvested it was pointed out that because the crop had not been raised under Government supervision, and because it was air-dried, instead of kilndried it was not within the conditions of the guarantee. Some of the growers were in difficulties and finally, as an _ act of grace the Department df Agriculture decided to advance a price to the growers, but a"price which, after payment oi transport charges, left them with a email return. Growers are displeased at tins turn of events, but it is pointed out that the Department is not at fault. However, the three years are now over and the position is that the London maket ib still untested by any considerable quantity of New Zealand leaf. It remains to be seen whether the leaf which is raised in the Dominion is fully suitable to that market and whether it will fetch a fair price there. . . . . At the moment the Department of Agriculture does not advise persons to embarK on tobacco growing as a sole .means of livelihood, unless they are working under contract to a company, or unless they are secured in some way. Meantime, it has been decided that Mr. C. E. Low, Government instructor on tobacco growing, shall work in the North Island this season._ Improved methods of drying and conditioning houses of better standard make it possible tha. this season's crop will, show an all-round [ improvement.